Issuance from Poland, Isbank; Lat-Am CDS tightens; roadshows for Ahli Bank, Alternatifbank

By Christine Van Dusen

Atlanta, March 30 – Poland and Turkey’s Turkiye Is Bankasi AS (Isbank) sold notes on a solid Wednesday for risky assets, as emerging markets bonds tried to maintain the Federal Reserve-inspired rally.

“Latin American credit closes tighter and higher but off the best levels of the day,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 355 basis points from 367 bps, while Mexico’s moved to 157 bps from 163 bps.

“Cash prices are bid throughout the session, with a flattening bias seen in most curves, despite the steepening seen in the United States Treasury curve,” he said. “Latin American high yield also finished firmer on the session.”

Indeed, Venezuela's 2027s were slightly higher, at 40.10 from 40, and PDVSA’s 2017s closed at 52.75 from 51.50.

Argentina’s Bonar 2024s were up at 108.25 from 107.75, he said.

“Flows today saw mostly buyers of long and low-beta EM paper,” he said. “Sellers did emerge later in the day as the rally faded a bit into the close.”

Other names put in “varying degrees of performance, it seems,” another New York-based trader said. “Credits that had struggled early yesterday and Monday, like [Brazil-based Vale SA and Mexico’s Cemex SAB de CV] are definitely stronger.”

Buyers emerged, after backing off during the last five or six sessions, for names like Colombia-based Ecopetrol SA. The company had a “huge run-up that began in the first week of March,” he said.

“Ecopetrol, which continued to sell off yesterday and looked as though it was ready for a precipitous drop, has recovered somewhat, with buyers resurfacing, after what was a pretty steady stream of selling the past week,” he said.

Uruguay hits highs

Looking to Uruguay, the sovereign’s 2033s, 2036, 2045s and 2050s high new recent highs, another trader said.

“Seems the curve was seen as far too steep and the 2024s and 2027s as too rich, with those bonds remaining under pressure,” he said.

Isbank sells bonds

In its new deal, Istanbul-based Isbank sold $750 million 5 3/8% notes due Oct. 6, 2021 at 99.540 to yield mid-swaps plus 420 bps, a market source said.

The notes were talked at a spread in the 435-bps area.

Deutsche Bank, HSBC, ING, JPMorgan and Societe Generale are the bookrunners for the Rule 144A and Regulation S deal.

Poland prices notes

Poland priced $1.75 billion 3¼% notes due April 6, 2026 at 99.249 to yield Treasuries plus 150 bps, a market source said.

The notes were talked in the Treasuries plus 165-bps area.

Barclays, BNP Paribas, Deutsche Bank and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered deal.

Ahli Bank sets roadshow

Qatar’s Ahli Bank QSC will commence a roadshow on Thursday for a dollar-denominated issue of benchmark-sized notes, a market source said.

HSBC, Barclays and QNB are the bookrunners for the Regulation S deal.

The roadshow will begin in Singapore and travel to Hong Kong, Abu Dhabi and Dubai before concluding on April 4 in London.

The lender is based in Doha.

Alternatifbank roadshow ahead

Istanbul-based Alternatifbank AS will set out on April 3 for a roadshow to market a dollar-denominated issue of notes, a market source said.

BofA Merrill Lynch, Citigroup and Commerzbank are the bookrunners for the Regulation S deal.

Mongolia draws orders

Mongolia’s new issue of $500 million 10 7/8% notes due April 6, 2021 that priced Tuesday at par drew a final order book of $750 million from about 110 investors, a market source said.

Credit Suisse, Deutsche Bank, ING, JPMorgan, Golomt Bank and TDB Capital were the bookrunners for the Rule 144A and Regulation S deal.

About 45% of the orders went to the United States, 35% to Europe and 20% to Asia, with 91% to asset managers, 6% to insurers and pension funds and 3% to retail.

In trading on Wednesday, the notes were seen at 100 1/8 bid, 100 5/8 offered, a trader said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.